i'm jim cramer, and welcome to my world. you need to get in the game! they're nuts! they're nuts! they know nothing! i always like to say there's a bull market somewhere. "mad money." you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. i just want fewer days like today. my job is not just to entertain but to educate you, so call me at 1-800-743-cnbc. on a day like today, where the dow plunged 275 points, s&p nose dived 2.46%. yeah, hit the bear. nasdaq plummeted 2.82%. a terrible start --

>> the house of pain! >> to a new month of a miserable may. any game plan worth its salt has to start with a plea for help. you know when you hear that someone has hurt himself, physically hurt himself? and it's a cry for some attention and some love. well, that's exactly what's been happening with the stock and bond market where is the dow has now given up its gains if for year and the yield on the ten-year treasury hit another all-time low, below 1.5%. these are extraordinary times and they require a different kind of game plan than what we usually do here, because we always start the game plan for next week with what happens on monday. the thing is, it can't wait that long. we need something to happen sunday. and that's what these cries for help are signaling. we need something to happen like obama and fed chief ben bernanke calling the leaders of europe and say hey, guys, look, you're bringing down the whole darn

world, including now, judging by our mediocre employment report, our own country. you're bringing it down with your squabbling and your indecision. you've got some hard choices to make, europe. we will help you make them. but you must make them. because we're all about to be pulled down into recession because of your dithering. obama and bernanke have to tell these leaders we will be willing to give your central bank a credit line from our fed if you would simply issue your deposit insurance. to all the banks in your universe so the money doesn't keep flying out of the weaker countries. that's what's happening. spain, greece, the money is flying out of there going to german banks. bernanke and obama have to say they will extend a credit line toward the creation of euro bonds that buy the sovereign debt of countries that are at least trying to grow their economies despite germany's endless calls for austerity. the president and the fed chief must say we want to be part of any martial plan that brings back growth to europe. but you definitely need to start a martial plan.

yes, that's how horrible this employment report was today. it's got us pulled down, too. separately, obama and bernanke, you know what they've got to do? i know this is a real stretch. but they actually have to call the chinese and say hey, listen, you guys got to step up to the plate. you got to stop devaluing your currency and help europe turn around, because 20% of china's goods are dumped -- i'm sorry, sold in europe. i hesitate to say it because there's not a great history of help here, but actually the president needs to call the responsible -- i hate to say this word. the responsible opec nation, the ones that have made so much money off this running crude. say you better help, too. japan, brazil, they all need to be called, every one of them. a lot of phone calls will have to be made this weekend because it's not just europe's problem anymore, it's a global problem. that's what the miserable jobs report today did. the jobs report was the proximate cause of today's horrendous losses. but it is saying no one is immune. why do you think gold spiked? no currency is immune.

if the calls aren't made, what happens if nothing happens on sunday? what if sunday comes and goes and come monday nothing happens? you better get used to action like today because we're going to get a lot more of it. after this jobs data, we need to accept the fact that our markets have to go lower, meaning interest rates are going lower for bonds and prices for many, many stocks are going to go lower, too. not all, okay? but many. does this mean we should give it up? should we give it up and go home? does it mean there's nothing worth owning at all? we have to sell everything? first off, to anyone who wants to do that, okay, i understand. i'm not going to defend it. i'm not going to defend this market. every night a series of embarrassing events. farce of europe, facebook ipo fiasco, all the interconnected banks that claim that they're not. these matters instill zero confidence. i can't blame anyone for wanting to sit this out. i'm not going to tell you how dare you think of selling and i'm not going to say are you out of your mind for selling now?

not at all. my charitable trust is the highest cash position since i started. on the other hand, i've got a job to do, whether it be for charity or on this show. i'm supposed to take the mantra to search for bull market somewhere because it's always been there. unless you simply pay attention to nothing but the average, just if you look at the averages, then you don't know it, but there have been some incredible raging bulls going on. they're just smaller, they're more contained, they're increasingly threatened, they weren't visible today. but they will, i believe, withstand even this difficult test. if you're willing to take some short-term pain to get to the ultimate gain, because boy, have we ever talked about a lot of stocks on the show this year that are making you a lot of money. where are the bull markets? contained, threatened, but here's the segment. largely domestic companies with dividends that yield well in excess of treasuries.

companies that are also beneficiaries of the stagnant decline in commodities and should not expect their growth to be crimped if it wasn't crimped in the dress rehearsal for this market, which is the great recession of 2008. i'll give you worst case scenarios. it's a smaller group of stocks than we'd like. it's a more difficult dark board. dart board being facetious. we work hard, we will find the right stocks. but buying treasuries isn't really investing right now. for most, given the transaction cost, the only reason you buy treasuries is because you're worried your money would be stolen if you kept it in your house. reasonable worry. with these criteria in mind, let me give you a game plan. let me tell you how i'm going to look at stocks. for what to pipe yes, we know all the areas that are not covered by that and there's areas that are vulnerable. the non-domestic, they're all vulnerable. but if we get the important calls, it's going to change. if we don't get the important calls this weekend, the market continues to go down.

first, starting today, here's a non-economically conference we'll be paying to, it started today, it runs through next tuesday. we'll be looking for companies with breakthrough drugs that they don't get any credit for because the global economy is so horrid that no one is paying any attention. but we are. we're going to pay close attention to johnson & johnson, which fits our criteria for stock that can stay afloat here and also a terrific exposure to cancer drugs. i'm going to be listening to celgene. and the stock was hammered today. could be an attractive opportunity. but when it comes to actual stocks that report earnings, like what our game plan actually focus on, we want to listen to dollar general. why? because one of the best acting stocks in the world right now is walmart. up 21% year over year, 10% year to date. always a bull market somewhere?

hey, largest retail in the world. i'll take that. a lot of what has happened is good at walmart, they figured out how to beat stores like dollar general. they beat them at their own game now. any sign that dollar general acknowledges this trend will be a good reason to buy walmart on weakness, although it was barely down today. off 27 cents. i'm interested in stocks that are only down 27 cents on really horrible days because they tend to go up a lot on good days, and there are good days. there are also always money managers looking to buy growth where they can find it. that means we have to pay attention to a smaller company -- if you're a close watcher of this show, you've definitely heard of. ulta salon. one of the many great quarters in a row that have caused this stock to rally tremendously. how about a 60% year over year gain with this one, 30% year to date. i still want those gains. i don't want that 1% the treasury is giving me. you know me. i think you need to undergrow stock in your portfolio. let ulta be your guide. while people whine about the bear market, can i just say that you would have rather -- would you really have rather hidden cash or in an ulta salon? wednesday brings us crude inventories.

okay, look, one of the underlying themes of this market that i think is so mystifying is oil. oil is in free fall. it's down 24%, pretty much in a straight line. we know that oil has become an asset that's bought and sold by hedge funds these days, not just something you used to fuel your car. at some point, this market is going to have to recognize the positive side of cheaper oil. there's been very little recognition so far. right now the market only cares that oil weakness must be some sort of portend for economic weakness. if we see a draw down in oil, that tells us the usage isn't falling off a cliff. that's what you find out on wednesdays. we might be able to find a bottom for one of the worst performing assets on earth. at this point, as counterintuitive as it may seem, a stabilization in oil, which of course will make so it we have to pay more at the pump, would be good for the stock market. yes, we need it.

it's that counterintuitive right now. just as we'll get a growth gut check from ulta, we're going to have the same thing with lulu lemon on tuesday. lulu is one of our favorite fast movers that has come down. that always happens initially. if this one can rally after reporting a good number, you're most likely going to see growth stocks rallying. you want to be mindful of that growth elixir impact. they all trade together. okay? seems weird because they're in different segments, but they all have high growth and those stocks trade together. finally, fridays from now on, they're going to take on tremendous significance. if nothing is done this weekend to stem the declines, you're going to get a bad week next week. you can presume that a week from now, we'll be playing out the exact same tune you're hearing today. will they do something this weekend? if not, the market is going to go lower. here's the bottom line. will our leaders and those in europe act this weekend after this horrible unemployment number? will they respond to the market's obvious cry for help? it will be the refrain that lasts until either something

significant happens or most stocks have fallen so low that it no longer matters. obviously you know i favor the former. we're going to keep finding those bull markets wherever we can, even as after today's miserable employment report we know our job just got much, much tougher to do. let's go to bill in new york, please. bill? >> caller: bill marcellus, boo-yah, jim. >> boo-yah right back at you. what's up? >> caller: i'm curious about paychex. payx. it's held up well in inn spite of the economy. small businesses are heavy users of paychecks. insecure about growing regulation. i'm curious, jim, is the price totally tied to employment reports and can it maintain its earnings to support the current dividend?

>> this is a great question. marty has been on the show many times. here's the problem. this is really important because this is bad. this stock is being supported by its yield. it's got a 4.3% yield. it's not being supported by its earnings, which are not growing. i think the earnings are enough to pay the dividend, which therefore makes it into basically a fixed income security, but i think you should be awarded with a higher yield. let's go to mick in pennsylvania, please. mick? >> caller: hey, jim, how you doing today? >> rough mick, to be honest. not a great day. how about you? >> caller: i'm watching the same channel as you're watching. i had a quick question for you about costco. consumers have been shifting from regular retail to wholesale shopping tomorrow. three major wholesale players, costco has about a 50% market share. they just recently reduced their may sales figures. i was wondering what you thought about the company in general, especially since their ceo just

retired and what you think about the stock in the future. >> great question, mick. sold a lot of stocks and cycled it into costco, bought it right here earlier this week. my trust is going to buy this one. new ceo, tremendous conviction. business model great. fees going higher and people are paying them. costco is the right stock for this environment. domestic play looks real good. what is the game plan for next week? it all depends on sunday. we need to see some action. we need bernanke and obama to pick up the phone and start calling these global leaders. if no calls are made, we're going lower. "mad money" will be right back. coming up, cramer is switching gears to find you a stock with a set of wheels that's ready to ride. could this high speed spec put you on the highway to profit? and later, rip off the band aid? this global health care company's products have been in medicine cabinets for over a hundred years, but its stock trailed the market this year.

could cramer's diagnosis unlock its true value? all coming up on "mad money."

other stocks are being slammed because of the u.s., a horrible employment report. the why even bother factor is enormous. as in why even bother playing this game if things are so horrible? why even bother owning stocks when it's so much safer to sit on the sidelines? no disagreement. but listen, hear me out. every night i've been coming out here, seven years, giving you the same answer. it is worth it as long as you stick with the three d's. diversification, domestic security, and dividends. those worked the last time europe had gone bad and they're working again now. but i also know that the cautious yield-oriented strategy i keep preaching right flow is the opposite of exciting. and you're never going to do all the necessary homework, which is ideally one hour per week per stock in your portfolio. if the game stops being interesting, you won't even come near doing that much work. so what's our antidote to that?

it's why we like to speculate. why we play with high-risk, high risk reward stocks for a little bit of our portfolio, because it makes investing fun, even in a really terrible environment. if i can make it compelling, i can keep your head in it and then we can get the longer term, bountiful returns that the market has given us. but obviously in a lousy market like this one, it's much harder to speculate wisely. so i was intrigued last week, kind of blown away, actually, when i got a call from steve in connecticut asking for some guidance on this lithia motors. that's l.a.d. for you home gamers. jeez, a car company? what would i want that for? then i started thinking. they operate a chain of car dealerships primarily in the midwest. i'm in the northeastern, probably why i don't know it. small company, getting smaller, of course, because of how bad the market is. but that puts them right in the speculative sweet spot in terms of the size we like, the market cap of a good speculation.

and lately, the company's been putting up some truly stellar numbers. which makes me think that lithia could be worth buying if you're bullish on america, longer term, and two, you need to fill the speculation reserve parking space. i think every portfolio should have one stock that is speculative. keeps you from stepping away, not wanting to open your statement. keeps you focused. now, i know, some of you are probably thinking a car dealership? i mean, seriously. weren't the dealers devastated by the great recession? many were forced to shut down as part of the gm and bankruptcy process? do we really want to play in this business at a time when job creation seems to be stagnating and gasoline prices are still high, even as the large declines

in oil should ultimately result in lower prices at the bump pump. i understand these concerns. it's still a mistake to focus on lithia as part of a small part of the chain. at the end of the day, it's really a retail hear the happens to sell new and used cars. everyone's pretty gaga for retail. that area has held up well. the retail car market is a trillion-dollar market. nearly 18,000 dealerships scattered across the country. yes. lithia. a retailer that's 100% domestic, growing like crazy, and has an almost infinite amount of room to expand because the dealership behind the scenes is so fragmented. in other words, you don't have to be out of your mind to believe that lithia might be worth speculating. even as the stock was slammed today, falling 1.87% -- i'm sorry, 7.7%. in other words, it did get hammered. if you think the consumer is still alive and well here in america, and that's harder to

believe today after it was yesterday, then lithia, this all things domestic retailer, actually does make sense. so if lithia is a retailer, what do we look at to try to figure out why we like it? we look at the most important metric. we look at same store sales. in the first quarter, lithia delivered a staggering 21% increase in same store sales. miles and miles ahead of their next closest competitor. with the new cars, the company same store sales were up 25% that. is on top of a 40% increase the year before. it's a very tough compare. they're delivering great numbers despite the most difficult of environments, and in the event that they did fantastically last year, the next closest competitors is sonic automotive. this thing was only at 12.1%. nobody else in the new car game even managed to reach double digits. this is in a class by itself. it had the highest gross margins. the best used car sales in the

group. the fastest revenue growth. 30% for quarter. they're taking market share all over the map. based on the numbers, these guys are clearly the best at what they do. a dealership doesn't just sell cars. the most profitable part of their business is servicing the cars, not to mention providing finance and insurance. the service part of the business accounts for just 11% of lithia's revenues, but it makes up 32% of the company's profits. making the sale is just the beginning, as lithia can keep making money off its customers for years and years. what a nice, stable business to have. how do they do it, though? how has lithia been able to post numbers so much different from the competition? they have a smart strategy. their goal is to have the most unique brands in the areas where they operate. let's pick billings, montana. the only toyota dealer in billings. they can replicate this which model should we be in part of the country car strategic vision everywhere.

right now, they're only the ninth largest auto retailer in america. that's with just 84 locations in 11 states. the dealership business is super fragmented. top ten players represent just 8% of the country. lithia has a tremendous amount of room to grow. we love that on "mad money." management literally sees no end to the availability of dealerships they can acquire, plus, they know what works. so they're probably not going to make any boneheaded purchases. these are smart guys. the most recent quarter, phenomenal. they beat the earnings estimates by 18 cents. it was on a 42-cent basis. you know what's the most remarkable of it all? it's cheapest of all the auto retailers. the stock trades at just eight times earnings. 23% long-term growth rate. compare that to auto nation. you see them on tv a lot. 13 times earnings, 18%. car max, 13 times earnings, 12% growth.

penske, really good company. ten times earnings, 21% growth. lithia is cheaper than all of them. cheaper and perhaps better. okay, let's go over some caveats. it's a tiny company. if you buy the stock, you're taking a big risk. you're betting the u.s. consumer recovery will continue and didn't just end today. if the consumer stops spending, lithia is in trouble. we know in the great recession, people put off buying cars. this is not like shopping at a dollar store. it's a retailer. but it may be the similarities end right there. people stop buying cars once, they can do it again. today's unemployment number does not give me the confidence to recommend the stock to you right now. but here's the bottom line. steve in connecticut, lithia is a terrific spec. that said, if i want a domestic retail with great numbers but fewer worries, i'd rather own a store that sells discounted necessities right now, not cars. however, if you're a bull and you think negative economic data we got today is an aberration, then i got to tell you

something. lithia may very well be for you. after the break, i'll try to save you more money. coming up, rip off the band-aid? this global health care company's products have been in medicine cabinets for over a hundred years. but its stock trailed the market this year. could cramer's diagnosis unlock its true value?

don't let today's hideous action blind you to next big opportunity. there are still stocks that are worth owning, even if europe is falling apart. things in the u.s. are worse than we thought as we know today from the weak jobs number. i know many of you feel like you should just sell everything, but that's panic talking. panic, let's just say, it's not an investment strategy. that said, why don't we just assume all the doomsayers are right about the economy is. there anything that's worth buying right around here? absolutely. might not go up immediately, but does it have to for you to buy it?

does having have to go up that day? like if you buy it and it doesn't go up that day, you're an idiot? is anyone that perfect? can't we all just calm down and admit that in the selloff, some bargains are being created. if the domestic recovery is truly faltering, we have a course to make money. you want to load up in the recession, stocks with high yields. they come back hard. food, beverages, tooth paste, toilet paper, all things health care. sure, they might not work on a day when everything's going down hard, but you can't just invest for today. that's how suckers invest, if you want to call that investing. that's how you lose big money, not make it. you make big money over time, not over hours. you have to invest for the future, which means right now, buying the stocks that are on sale of less economically sensitive companies with

terrific dividends, we can even look international, as long as the companies can grow profits and can flourish in tougher times. in other words, it's time to buy johnson & johnson. wow. i haven't recommended this stock in a while. if you want to be immunized against a global slowdown, it's hard to do better than band-aids, tylenol, knee implants and prescription drugs. j & j also sports a juicy 4% yield. that's not the only reason i'm getting behind this one tonight. the truth is -- i've never recommended a stock like this, but it was just so brilliant. i think johnson & johnson could be a fabulous breakup play, just like all the other breakup stories we've highlighted here on "mad money" that have created a tremendous amount of value for shareholders right here, right now if this market that no one likes and everyone mistrusts. now, jnj hasn't done anything to indicate that it's thinking about splitting itself up. okay.

but yet, goldman sachs came out with a terrific, truly terrific piece of research, making the case for why jnj should be broken up. we bash a lot of analysts on this show. we're pretty rough on wall street quite a bit. but sometimes a piece of research is so good that i don't mind just saying you know what? not my idea. credit where credit is due. but i've got to bring it to your attention. especially on the eve of the american society of clinical oncology conference where jnj is expected to make a splash with some of its anti-cancer drugs. but if nothing good happens this weekend, the stock is going to open down a dollar. maybe that's when you start. goldman's thesis, they see johnson & johnson as a pitiful helpless giant made up of three businesses that don't have much in common. if jnj were to break up into three pieces, each standalone business would be an industry leader and they'd all get more love from the market. big institutional investors either prefer to own growth stocks or they prefer to own value stocks and they're very different animals. there was a terrific article in "usa today" this morning by john wagner about this financial feud entitled "growth or value fund: why not both"?

i like john very much. i agree with him that it shouldn't be this way. the truth is the growth manager versus value manager feud is real. you do have to be one or the other in this game. lots of companies are waking up to the fact that the hatfields and mccoys, which everyone tells me to watch, the feud is not ending any time soon. they've got to pick a side. companies feel they have to pick it. and if like johnson & johnson they're too big with a nice mix of growth and value, more and more companies are realizing they need to break up so their stocks can get the respect they deserve. so what they do for a living starts mattering. and that's why these analysts at goldman think jnj could be worth $76 on a breakup basis, 23% higher than where the stock is right now. growth managers would bid up the company's fast growing pharma business while the consumer and medical device component guys would -- it would really appeal to value. right now, jnj is just too big

and too darn complicated for most people to fathom. split it up and it's easier to get your head around. i think johnson & johnson's new management should think long and hard about breaking up this company because that would be a huge win for shareholders. but there's more to this story than the possible upside from a notional breakup. even if jnj ticks together, i think it's going to be a terrific turnaround story. remember, johnson & johnson's former ceo william weldon did damage to this company, which is why i had to put him on a wall of shame. jnj used to be a phenomenal business. in fact, jnj was my number one recommendation for all the years i worked at the goldman sachs. over the last decade, the stocks up just 32% with reinvested dividends. i want you to go back 20 years. guess what you get, 690% return. jnj, band-aids, up 4,805% from

1982, through a couple of bear markets. yeah, jnj is the definition of blue chip that was poorly run, especially the mcneill labs consumer biz. mcneill is located in my hometown, biggest employer. we all knew it was the single best company on earth. everybody wanted to work there. it was loyalty. i lived a mile from mr. mcneill. i never thought jnj would do this to his great company. now perrigo makes knockoff versions of mcneill's over-the-counter products. nobody wants to talk about it. maybe it's because i'm from the division. you know what i mean. i'm talking about reputational damage. you don't really realize how much a new ceo looking at things

with a fresh pair of eyes can do to this company and someone could come in and really generate a return here. plus, with jnj's 4% yield, they're paying you to wait for the new guy. alex gorsky is his name. talk about getting in early. he just took over about five weeks ago, although he's been with jnj since '88. he knows his way around the company, because if he's going to break it up, he's got to know it. ideally he'll look out at the landscape and realize all the breakups in the pharma sector have worked because these companies have done endless acquisitions to grow when we all really want them for high growth and value, but they'd muddy the waters. to think about what the good companies are doing, they didn't ask what was going to break up on october 20. since then it's up 14%. s&p is up 6%, which is why my position is avid, because this breaking up is easy to do theory is really good. pfizer. listen, i know, pfizer doesn't excite you anymore, but it's up about 15%, s&p's flat.

how about this covidien. the very boring formula company back in 2009. guess what it's triple. the track record for these pharma breakups is fantastic. i think it will be the same for jnj. johnson & johnson has some revolutionary drugs that we don't even care about. if jnj were to break itself up, its standalone drug business would be the best big pharma company out there with the portfolio drugs that treats a wide range of diseases. unlike other big pharma places, the big wave is behind them. jnj has a terrific pipeline to more than offset the losses from going generic. been getting more data on the prostate drugs at the american society of clinical oncology meeting this weekend. it's going to be good. imagine, data comes out, nobody

cares because nothing was done in europe over the weekend, jnj opens down a dollar, there's your chance. finally. here's a stock that you can buy every day. i came in shortchanged in the '87 crash. i had a huge number of option. i was worried about the stock snapping back quickly because it was so fabulous. under the new ceo, i would be afraid to shortchange. very afraid. he may do something to bring up the value. the risk to jnj is no longer just to the downside. here's the bottom line. in this awful environment, and i am saying it is awful, johnson & johnson is the kind of stock you can circle the wagons around. if the new ceo follows goldman sachs' advice, you've got a giant reward with an incredibly low amount of risk. that's smart investing in this or any environment. john in pennsylvania. john? >> caller: yes, jim. boo-yah. >> galloping ghosts, bring it on, partner. >> caller: question, press release, lee corporation.

i'd like to know first of all, look at that release, they indicate -- they don't really indicate, sit a one for one on the initial split on the 28th when they spend? >> they're spending and they're giving you special dividend -- >> caller: no, no, prior to that. on the 28th, they say they're going to give x number of shares of the coffee and tea company. is it a one for one ratio or not? >> i don't know, because they're doing a reverse split. and that was just announced today and i have to admit i was expecting one thing to happen. i didn't expect this part to happen. i've got to do work. i would normally come in locked and loaded, but some days the market is so horrendous, i did not get to do the details of the final sara lee announcement. that's my bad. just overwhelmed today. i have to just own that and admit it. i do like the company. in tough times, a tough stock like jnj is one you can circle the wagons around. if the stock opens down a dollar on monday, i've got to tell you something.

it's going to be a terrific bargain. just maybe not for monday. stay with cramer. coming up, send cramer an e-mail to madmoney@cnbc.com or tweet him @jimcramer #madtweets and he might just answer you on the air. wñwñwñwñwñwñwñwñwñososososvycyíy

it is time! it is time for the lightning round. i'll play this sound, and then the lightning round is over. it is time for lightning round. i'm going start with will in louisiana. will! >> caller: boo-yah from bossier city. >> nice to have you. >> caller: sslr. >> talk to me later, alligator. john in florida. john? >> caller: jimmy! mark west energy. >> this is going to be the same for enterprise, the same for

energy. these are all free fall. you need to know that your first buy is not going to be your last buy. i like mark west. jane in new york. jane? >> caller: hi, jim. this is your biggest fan, i live in put putnam value, new york, but since we're from brooklyn, i'm sending you a big brooklyn boo-yah! >> i'll take that, although when you threw the boyfriend in there, it was a big buzz kill for me. but go ahead, that's all right. >> caller: i wanted to thank you for sharing with your fans your wisdom, your sense of humor and most of all your passion for invest in the equity market. i myself am a passionate muni bond queen. i credit you for helping me understand the importance of diversifying my portfolio. so in my stock portfolio, i own about 500 shares of temper energy. >> it's up, it's up nice lyric it's got a decent yield. is it a bear market if you can

have a 16% return like she does? 16% return. i'm taking another. that was a long one, but we had to go over the love and fair thing in putnam and the boyfriend and stuff. let's go to scott in minnesota, please. scott? >> caller: hey, jim. you do good work. my stock is algt. >> here we go again. another bull market stock. it's an airline company. oil is in free fall. the stock is up almost 50%. but that said, i want to ring the register and take profits. i'm taking one more. i'm not done. let's go to chris in pennsylvania. chris. >> caller: jimbo, big boo-yah from pennsylvania. how's it going? >> real, good. >> caller: my stock is hertz global. >> everybody is upset about hertz because they have this industrial division. to me, stock is down a lot already. i would start nibbling at hertz. it is a little too economically sensitive for my taste and doesn't have a yield, but i am going to blast the idea of buying a little bit here.

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now let's do some mad tweets and a dash of mad mail. why? because i get many of my best ideas from the smartest audience in television. the proud citizens of cramerica. when you send them, i may not read them on air. i may make whole piece out of them like i did in the show. let's start with @davidgraham45. there's no way you could do a more outstanding job than you do, unless perhaps you had hair like herb greenberg. greenberg does look darn good for a 75-year-old man. let me just say this. you hear things on this show, and a lot of times they're from discussions i have with herb. for instance, he warned me about vera bradley. he doesn't tell you listen, it's going down. he says jim, i think you should do work on vera bradley.

i realize that vera bradley, a handbag company, is way too fashion sensitive and not doing well and i put it in the cell block. thank you for the idea, herb. he works with us. he is our partner. okay. here is one from @pylon. what are your thoughts -- by the way, can i just say, i like gld. everyone decided that gold was no longer any good. what happens the moment everyone decides it's no longer any good? exactly as i said it is. a necessary part of your portfolio. "mad money" is back after the break.

we all know that stocks are not bonds. duh. stocks give you an ownership stake in the company and tell you some of the profits. even if a business turns down, taking its stock with it, the bond bills still have to be paid by those companies. that's why people regard them as safer than stocks. the safest piece of paper at all, of course, treasury bonds, because they're backed by the full faith and credit of the united states, which is why we call them risk-free securities. right now, we're in a bizarre moment. the difference between a stock and a bond on its head. see, right now, bonds,

particularly treasure bonds, may be risk-free as far as being backed by the full faith and credit of the u.s. government, but the income stream that they pay you on those bonds has never been lower in history. even as our national finances have arguably never been worse. except perhaps during the civil war. and maybe not even then. so we have this bizarre anomaly where a paper that's guaranteed by the full faith and credit of uncle sam can't be considered as risk-free as it was. in short, you're being paid the least amount of money ever for a security that's the riskiest it has ever been. now, by contrast, i want you to consider con edison. here's a company utility with one of the greatest dividend track records in history. a balance sheet much better than the united states and backed by the full faith and credit of people who don't want their lights turned off. now, those are some motivated

people. especially in a year where almost everything we own of any value needs electricity. if you own con ed stock, it gives you a revenue stock almost ten times more than treasury and that can be increased, not kept at the same level. most important, con ed actually has some upside, because it provides power to one of the fastest growing areas in the united states, new york city. it also can supplant expensive oil provided by its competitors with cheaper natural gas that it brings to your house. and yes, it provides no power to europe where the lights are about the go dark in one country. i kid you not. the power companies can't pay their bills because the people aren't paying theirs. i ask you, which is safer, con ed's common stock or u.s. treasuries? which has more value? which is better for you? right now, i think the answer is actually clear. con ed gives you all the benefits of a good bond without any of the liabilities. treasuries, they remind me of a stock that can only go lower, pays you barely any dividend. yet if you like bonds, you'll love con ed. and if you hate bonds, then you'll love u.s. treasuries. enjoy the irony, but please, take the stock, not the bond.

stick with cramer.

okay, listen. it's obviously going to be a tough weekend. we have got to hope, if you're a bull, that the leaders get together.